“As Congress considers major investments in the nation’s infrastructure, it must take bold steps to address the climate emergency and continue to provide low-cost, reliable energy to American consumers. The current system of energy incentives is overly complex and far less effective than it should be, with more than 40 different energy tax incentives, including permanent subsidies for Big Oil. More than half are too short-term to effectively stimulate investments, while also providing different subsidies to different technologies with no discernable policy rationale.
The Clean Energy for America Act moves in a different direction, making the climate crisis and reducing carbon emissions the lodestar of America’s energy tax policy. The bill creates a simpler set of long-term, performance-based energy tax incentives that are technology-neutral and promote clean energy in the United States. Independent analysis shows that an emissions based, technology-neutral approach is critical to achieving the emissions reductions necessary to avert the worst climate disasters.”
Senator Wyden’s bill encourages transportation electrification through long-term incentives for battery and fuel cell electric vehicles and electric vehicle charging. Furthermore, this bill will provide a technology-neutral tax credit for domestic production of clean transportation fuel. Open to all resources, but only for fuels that are at least 25 percent cleaner than average.
INCENTIVES FOR CLEAN TRANSPORTATION as detailed in the Clean Energy for America Act
Clean Fuel Production Credit
- Clean Fuel Production credit for any taxable year is an amount equal to for any transportation fuel sold during any calendar year ending before January 1, 17 2030, and amount equal to the product of $1.00 per gallon (or gallon equivalent) with respect to any transportation fuel
- ALTERNATIVE MOTOR VEHICLE CREDIT FOR FUEL CELL MOTOR VEHICLES
- ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT
- ELECTRIC VEHICLES
- Making new qualified plug-in electric drive motor vehicles credit refundable for individuals
- Per-manufacturer cap limiting access to the plugin-in EV tax credit would be repealed
- CREDIT FOR QUALIFIED COMMERCIAL ELECTRIC VEHICLES
- The amount determined under this subsection with respect to any qualified commercial electric vehicle shall be equal the lesser of— (A) 30 percent of the basis of such vehicle, or (B) the incremental cost of such vehicle.
- The incremental cost of any qualified commercial electric vehicle is an amount equal to the excess of the manufacturer’s suggested retail price for such vehicle over such price for a comparable vehicle/vehicle powered by gasoline or diesel
- A qualified commercial electric vehicle means any vehicle powered by an electric motor powered from a battery which— (A)has a capacity of not less than 10 kilowatt hours, and ‘(B) is capable of being recharged from an external source of electricity
Temporary Extensions of Existing Fuel Incentives
- SECOND GENERATION BIOFUEL PRODUCER CREDIT – to 2023
- CREDIT FOR ALTERNATIVE FUEL MIXTURES – to 2022
- BIODIESEL, BIODIESEL MIXTURES, AND ALTERNATIVE FUELS – to 2022